Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 328.465

  (1)   If:

  (a)   section   328 - 455 applies in relation to the transfer of an asset under a transaction; and

  (b)   the transaction provides for * membership interests to be issued; and

  (c)   the membership interests constitute all or part of the consideration provided for the transfer of assets ( transferred assets ) under the transaction;

then:

  (d)   the first element of the membership interests' * cost base is the sum of:

  (i)   the * roll - over costs of the transferred assets that are neither * depreciating assets nor * pre - CGT assets; and

  (ii)   the * adjustable values of the transferred assets that are depreciating assets;

    (less any liabilities that a transferee of any of the transferred assets undertakes to discharge in respect of the transferred assets) divided by the number of membership interests; and

  (e)   the first element of the membership interests' * reduced cost base is worked out similarly.

  (2)   However, if the * membership interests constituted only a part of the total consideration provided for the transfer of the transferred assets, reduce accordingly the amounts worked out under paragraphs   (1)(d) and (e).